4 million employed in oil and gas sector
Published on: Thu, Jul 10, 2025
By: Sherell Jeffrey Text Size: Kota Kinabalu: The importance of oil and gas to Malaysia's economy cannot be overstated. The sector employs four million people nationally, with 160,000 specifically in oil and gas operations. Most significantly, 40 per cent of government income comes from oil and gas activities. 'With 160,000 people, with a notable contribution of GDP, we are 20 times multiplier than national average,' said Anwarudin Saidu Mohamed, Reservoir Link Energy Berhad Chief Technology Officer. 'That simply means 40 per cent of cost required to build schools, hospitals and infrastructure is all coming from oil and gas,' he said during a panel discussion at the recent Sabah Oil, Gas and Energy Conference and Exhibition 2025 (SOGCE) Executive Plenary Session. Shell's presence in Sabah exemplifies the long-term commitment that builds sustainable energy sectors. 'Shell has been in this country for over 130 years. Starting to mobilise the oil and gas industry first in Miri, Sarawak and then also in developing the nation through the years in collaboration with Petronas,' said Shell Malaysia Upstream Sabah Deepwater General Manager Wong Kim Mun. The company's experience reflects three key realities namely growing global energy demand, the gradual pace of energy system changes and the continued importance of oil and gas well into the 2050s and beyond. Modern oil and gas development in Sabah emphasises environmental responsibility alongside economic growth. Companies are implementing strict environmental standards and carbon reduction technologies. 'If there is a lot of flaring, then the carbon footprint will be very high,' Yinson Energy CEO Datuk Mohamed Sabri Mohamed Zain said. 'Anything for us more than 11 tons per Barrel of Oil Equivalent (BOE), we do not touch. Because it will cause a big problem for our borrowing,' he said. Smaller companies are also leading environmental initiatives. Hibiscus Petroleum is pioneering carbon capture and storage technology in Malaysia, planning to become one of the first companies to inject CO2 back into the ground by 2028. Sabah's strategic location positions it perfectly for regional expansion into Southeast Asia's growing energy markets. 'As a Malaysian company, you should be focusing on Southeast Asia, you got lots of activity in Indonesia, Vietnam is picking up again, Thailand's got plenty,' said the company's Country Manager Dr Pascal Hos, pointing out the regional opportunities. 'If you can develop something like that, then as a regional company, I would say you probably get more priority than a big international company,' he said. Panel speakers also pointed out the importance of attracting high-quality investors rather than those seeking only cheap labour and energy. 'The mistake that we do sometimes is that some investors, they come to Malaysia. They want cheap labour. They want cheap energy. So you have to get investor, a high-quality investor. Bring the right industry who can pay the Malaysians well,' said Senior Vice President of Malaysia Assets and Petronas Carigali Sdn Bhd CEO Hazli Sham Kassim. Ian Lim, ConocoPhillips Malaysia General Manager, noted that ConocoPhillips Malaysia identifies the Kebabangan (KBB) area as potentially becoming the heart of the State's gas and energy infrastructure to support all these growth and revisions. In the oil and gas industry, KBB typically refers to the Kebabangan oil and gas field located offshore Sabah. 'These are 15, 20 year horizons. So, stability, fiscals and the supporting environment is needed,' Ian said, pointing out that the company believes future energy development requires long-term thinking and stability. Looking ahead, Sabah's potential extends beyond traditional oil and gas operations. The State is positioned to play an important role in Malaysia's environmental goals, with opportunities in carbon capture, renewable energy and sustainable development. 'Sabah is not only the reservoir of hydrocarbon, it is a reservoir of opportunity,' said Anwarudin. 'With strong fundamentals as we are today and political will and growing infrastructure, Sabah is positioned to bridge the legacy of hydrocarbon with the promise of new energies, empower local content and community-driven development, serve as a regional launchpad for Malaysia's net zero aspiration too,' he said. As Malaysia implements its national energy transition roadmap toward 2050, gas is expected to play an increasingly important role. Sabah's position as a major gas producer and its potential for renewable energy development make it central to these plans. 'The future does not belong to the fastest and the strongest, but it belongs to those who choose to grow together, responsibly, equitably and boldly,' Mohamed Sabri said. 'The question is no longer why Sabah. It is what more can we do with Sabah and Sabahan and to shape Malaysia energy destiny,' Anwarudin added. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BusinessToday
an hour ago
- BusinessToday
Bangladesh Eyes Proton EVs For Local Distribution
Proton Holdings Bhd's electric vehicle manufacturing has drawn interest from Bangladesh which is seeking to secure investment from the Malaysian national carmaker. Attracting investment by Malaysian companies across various sectors figures prominently on the agenda of Bangladesh interim government chief adviser Muhammad Yunus during his three-day Malaysia visit, which starts today. 'They produce a lot of cars. During the visit, Bangladesh will invite Proton Holdings to invest here,' Yunus's press secretary Shafiqul Alam said at a media briefing in Dhaka yesterday, according to a Bangladesh Sangbad Sangstha report. He was referring to the Malaysian automaker's electric vehicle (EV) push in his remarks. The company launched its first-ever electric vehicle, the Proton 7, in December 2024, and is holding a tour of key Malaysian cities between August and October to preview the Proton 5, the second car in the EV will also explore Malaysia's involvement in deep-sea fishing. 'We catch Hilsa and other marine fish within 40 to 50 kilometres of the deep sea. However, our maritime boundary is about 210,000 square kilometres,' Shafiqul Alam said. Yunus, whose trip is being undertaken at the invitation of Malaysian Prime Minister Datuk Seri Anwar Ibrahim, is accompanied by foreign affairs adviser Mohammad Touhid Hossain, expatriate welfare and overseas employment adviser Asif Nazrul and power, energy and mineral resources adviser Fouzul Kabir Khan. The national security adviser Khalilur Rahman, special envoy to the Chief Adviser on international affairs Lutfey Siddiqui and Bangladesh Investment Development Authority (Bida) executive chairman Chowdhury Ashiq Bin Harun are also part of the delegation.
The Sun
3 hours ago
- The Sun
Bangladesh Chief Adviser Dr Muhammad Yunus visits Malaysia for official talks
SEPANG: The Chief Adviser of the Government of Bangladesh, Dr Muhammad Yunus, arrived in Malaysia today for a three-day official visit. He was invited by Prime Minister Datuk Seri Anwar Ibrahim to discuss key bilateral matters. The commercial flight carrying Yunus and his delegation landed at Kuala Lumpur International Airport (KLIA) Terminal 1 at 7.47 pm. Home Minister Datuk Seri Saifuddin Nasution Ismail welcomed them at the Bunga Raya Complex of KLIA. Yunus inspected a guard of honour consisting of 28 officers and personnel from the First Battalion of the Royal Malay Regiment. The visit reciprocates Anwar's official trip to Bangladesh in October 2024, according to Wisma Putra. Tomorrow, Yunus will attend an official welcoming ceremony at Perdana Putra Complex. He will then hold a bilateral meeting with Anwar to review Malaysia-Bangladesh relations. Key discussion areas include trade, investment, labour, education, tourism, and defence. Both leaders will also exchange views on regional and international developments. Several Memoranda of Understanding (MoUs) will be signed during the visit. The MoUs cover defence, energy, strategic studies, semiconductor capacity building, and trade promotion. An Exchange of Notes will also be signed for diplomatic training and higher education. Anwar will host an official luncheon at Seri Perdana Complex in honour of Yunus and his delegation. On Wednesday, Yunus will deliver a public lecture at Universiti Kebangsaan Malaysia (UKM). He will also be conferred an Honorary Degree of Doctor of Philosophy in Social Business by UKM. Yunus will engage with members of the Yunus Social Business Centre community during his visit. In 2024, Malaysia-Bangladesh trade reached RM13.35 billion, marking a 5.1 per cent increase from 2023. Bangladesh is Malaysia's second-largest trading partner in South Asia. Major Malaysian exports to Bangladesh include petroleum products, palm oil, and chemicals. Imports from Bangladesh consist of textiles, footwear, and manufactured goods. The visit aims to strengthen bilateral relations and expand cooperation in areas of mutual benefit. Diplomatic ties between Malaysia and Bangladesh were established in 1972. - Bernama
The Sun
3 hours ago
- The Sun
Petronas reviewing operational and cost efficiencies amid low-price environment
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) expects the low oil price environment to persist, with prices hovering at around US$64 to US$65 (RM270.90) to RM275.10) per barrel, said executive vice-president and chief executive officer (CEO) of upstream business Mohd Jukris Abdul Wahab. He said the national oil company is reviewing its operational and cost efficiencies in response to the low-price environment, and challenging how it approaches everything – from maintenance, field operations, logistics management and procurement to the running of its offshore and onshore facilities. 'We are reviewing both our operational and cost efficiencies (as) the way we have done things over the past 50 years may not necessarily keep us competitive in the years ahead,' he said during a briefing for editors today. Also present was senior vice-president of Malaysia assets and Petronas Carigali Sdn Bhd CEO Hazli Sham Kassim. Mohd Jukris also said the US tariff environment has affected the global supply chain. 'It (the tariff imposition) affects the way we do business. The only thing that we can do is to respond internally and how we drive ourselves to become more cost efficient,' he added. Replying to a question on portfolio review, Mohd Jukris said the oil company assesses the need to bring in partners to reduce risk exposure, particularly for assets that require high capital investments but deliver limited value. 'Partnerships bring not only capital but also new operating philosophies and standards. In this industry, we can't operate in isolation. We must identify partners who can operate certain assets more efficiently than we can. This is the best way to unlock maximum value,' he said. Mohd Jukris said Petronas conducts portfolio reviews from time to time to ensure its assets remain competitive, with each asset having to meet specific standards. 'For example, they must have a break-even price of US$50 per barrel or less. Anything above that raises the question: do we keep this asset or not? 'Operational efficiency is another key criterion. Our unit production cost must remain below US$6 per unit. We set these parameters to guide every portfolio review,' he said. Petronas has seen its portfolio evolve, including the sale of its gas assets in Azerbaijan and, in 2021 and again last year, the scaling back of operations in Mexico through the exit from eight offshore exploration blocks. Mohd Jukris also said Petronas is very keen to expand its presence in Canada as the country is now one of its major liquefied natural gas (LNG) suppliers. He said Petronas has about 50 trillion cubic feet (TCF) of gas in Canada and the current LNG Canada project is only in Phase 1; hence the energy company has embarked on a series of LNG projects backed by this resource portfolio. 'With 50 TCF, we can support several more LNG projects as resource size is not the issue here,' he told an Editors Briefing today. Mohd Jukris also expressed hope for Canadian government's support for additional LNG projects. 'We are keen to expand our presence there and see Canada as one of our major LNG supply bases going forward,' he said. Petronas shipped the first LNG cargo from its LNG Canada facility in Kitimat, British Columbia, on July 8. Petronas operates the North Montney Joint Venture upstream gas project and is a major equity partner in LNG Canada, a US$40 billion LNG facility. – Bernama
